PoS (Proof of Stake) based coin is an alternative to PoW (Proof of Work) mining algorithm. Unlike PoW, which is used by most major coins, including bitcoins, the key factor that determines how much you mine is not the processing abilities of your machine, but the stake, aka how many coins you have on your wallet. Practically this means that instead of a mining farm that requires cooling & electricity, you can just have a small laptop with wallet and a chunk of coins on it. Smart community means CGEN is being invested only in selected projects through a multi-step voting system.